Ethereum declined 5% and it broke the main $400 support against the US Dollar. ETH price is recovering from the $385 support, but it could face hurdles near $400.
Yesterday, we discussed the chances of a sharp decline in Ethereum below the $400 support. ETH price did fail to clear the $410 resistance and it declined sharply (unlike bitcoin) below the $400 and $395 support levels.
The decline gained pace below $395 and the price settled below the 100 hourly simple moving average. It tested the $385 support zone and a low is formed near $383. Ether price is currently recovering and trading above the $390 level.
There was a break above the 23.6% Fib retracement level of the recent drop from the $418 high to $383 low. On the upside, the price is facing a lot of hurdles near the $395 and $400 levels.
Source: ETHUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $400 on the hourly chart of ETH/USD. The trend line is close to the 100 hourly simple moving average, and the 50% Fib retracement level of the recent drop from the $418 high to $383 low.
To move back into a positive zone, ether price must break the $400 resistance level and settle nicely above the 100 hourly simple moving average. The next stop on the upside could be near the $410 resistance.
If Ethereum fails to clear the $395 and $400 resistance levels, there is a risk of more losses. An initial support on the downside is near the $388 level.
The main support seems to be forming near the $385 level. A clear break below the $385 support zone could start an extended decline in ether towards the $368 support level in the coming sessions.
Hourly MACD – The MACD for ETH/USD is struggling to gain pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is recovering and close to the 40 level.
Major Support Level – $385
Major Resistance Level – $400
Published at Tue, 27 Oct 2020 05:48:09 +0000